Report: DWP 'offers to cut welfare bill by extra £3bn'

The Daily Telegraph has reported that the Work and Pensions Secretary has offered to cut the welfare bill by another £3bn each year to protect spending on the armed forces and police.

According to the newspaper, Iain Duncan Smith personally contacted the Defence and Home Secretaries about the proposal.

The report suggested more welfare cuts are being proposed to due to national security concerns. Credit: Press Association

But a spokeswoman for Mr Duncan Smith said: "Iain has not had any special discussions about protecting the defence or security budgets. These measures were on the table at the time of the Autumn Statement."

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Further £11.5bn spending cuts

Chancellor George Osborne said that seven government departments have provisionally agreed to cuts of up to 10% for 2015 to help make savings of £11.5bn.